FY 16 results presentation Press conference. Barcelona, 17 th February 2016 ANNUAL RESULTS 2016
2 2016, key highlights & figures Location: France Rural site 3 tenants
3 2016 In a nutshell Full year results above guidance and market expectations Revenues +15% EBITDA +23% Robust organic growth PoPs +4,5% Customer ratio +6% Strengthening DAS capabilities CommsCon integration DAS nodes +13% Better Business Risk Profile Geographical, business lines and client diversification Flexible approach to financing Maximizing available options 1.8 Bn cash+credit lines Solid capital structure Avrg. maturity 7 Years Average cost 2.1% Net debt/ebitda 4.6x Consolidation in Europe through selective M&A 670 M. Successful integration of Protelindo, Bouygues and Shere sites +1.765 sites International recognition Ibex 35 Index FTSE4Good Index CDP Best newcomer 2016
2016: key figures and indicators Key financial metrics growing at double-digit 613 Revenues ( Mn) 707 EBITDA ( Mn) 290 235 +15 % +23 % 2015 2016 2015 2016 RLFCF ( Mn) 251 Adjusted EBITDA growth is higher than revenues growth as a result of operating leverage 194 +29 % RLFCF growth is even higher than adjusted EBITDA growth due to high cash conversion ratio: 87% 2015 2016 4
2016: key figures and indicators Key business indicators: a solid growth PoPs Customer Ratio +19 % +6 % +3,033 24,698 0.07x 1.60x 0.02x 1.62x 20,740 +925 21,665 +4,5% 1.53x +4,5% Sept 2015 Organic Growth Dec 2015 Organic Growth Sept 2016 Dec 2015 Organic Growth Dec 2016 without CoP Change of Perimeter (CoP) Dec 2016 including CoP Dec 2015 Organic Growth Dec 2015 M&A Dec 2016 Dec 2015 Organic Growth Dec 2016 without CoP Change of Perimeter Dec 2016 including CoP DAS nodes evolution (CommsCon) 1,072 Backlog - Bn 8.0 +51 % 12.1 949 +13 % +350 % 1.8 Acquisition 2016 2014 2015 2016 5 Backlog of c.12bn represents c.14 years of revenues
2016 Improved business risk profile Revenue diversification by business lines and country EBITDA contribution 6 Revenue Contribution EBITDA contribution by country 19% 24% 62% 11% 5% c.50% 2014 IPO 2016PF 2014 IPO 2016PF 57% 27% TIS Broadcast ONS Proforma including full year contribution of 2016 acquisitions and fully assets integration from Bouygues Telecom announced in Feb. 2017
2016 Improved business risk profile Diversification by country presence and sector leadership 7 Strengthening European footprint Quantitative and qualitative leap 145 Cellnex vs Peers ( 000 of sites) 578 Sites 725 Sites 40 3,500 Sites 25 2016 21 11 x3 7 7,415 Sites 8,805 Sites Peer 1 Peer 2 Peer 3 Peer 4 2014 Proforma including 2016 acquisitions and recent agreement with Bouygues Telecom announced in February 2017 Italy: Includes Commscon s DAS nodes Spain: Includes broadcasting sites
2016 Shareholder value Share price, RLFCF per share 140 135 130 125 120 IPO price 14 Analysts Target Price 17.7 +29% upside potential vs. price as of 31 Dec 2016 115 110 105 31 Dec 2016 100 95 90-2.4% +14% 85 80-16.2% 75 70 65 IPO 7 May 2015 CLNX IBEX Source: Bloomberg RLFCF per share ( ) 1.08 8 0.65 0.84 +c.30 % +c.30 % 2014 2015 2016
9 2016: Income statement; financial structure Location: Spain Urban site 3 tenants
2016 income statement 2015 2016 Consolidated Income St Telecom infrastructure services 303 385 Broadcast infrastructure 225 235 Other Network Services 85 87 Revenues 613 707 +15% Operating costs (378) (417) EBITDA 235 290 +23% Non-recurring items (18) (26) Depreciation & amortisation (154) (177) Operating profit 63 87 Net interest (20) (41) Bond issue costs (7) (5) Non controlling interests (1) (1) Corporate income Tax (7) (1) Recurring net profit 29 40 +40% +38% One off "non cash" impact linked to Corp.Tax Rate in Italy 19 Net profit attributable 48 40 10
2016 EBITDA Organic growth delivering double-digit adjusted EBITDA growth 11 +17 279 +11 +23% 290 +11 +16 Galata (one quarter) 235 Jan-Dec 2015 Organic Growth & Efficiencies (+) Recurrent new TV channels (-) One-off simulcast Change of Perimeter 2015 Jan-Dec 2016 Change of Jan-Dec 2016 Perimeter including CoP 2016 Adjusted EBITDA Sept 2015 Recurrent new Channels Rorganig growth & Efficiencies Galata Jan-Dec without M&A Organic Growth Adjusted EBITDA Dec 2016
2016 Financial structure Cellnex has (as of february 17) 1.8Bn available in cash and credit lines 12 Net debt at closing 2016 1.5Bn Annualized Net Debt / Ebitda: 4.6x Average maturity: 7 years Cash Bonds Credit lines 480Mn Bond 2022 600Mn Bond 2024 750Mn Bond 2025 335Mn Bond 2032 65Mn (1) Credit Facilities 1,100Mn (2) RCF 500Mn Coupon 3.125% Coupon 2.375% Coupon 2.875% Coupon 3.875% Eur/Libor + c.1% Maturity 2019/21 Euribor (3) + c.1% Maturity 2023 (4) WAC of drawn debt: 2.6% WAC total drawn and undrawn debt: 2.1% Available debt (undrawn) 1.3Bn 6 Strong, growing and predictable cash flows allowing for a quick deleveraging 5 4 3 2 1 0 0 0 0
13 2017 Outlook Location: Italy Rural site 2 tenants
Targets Decommissioning Stages Organic growth delivery Strong PoPs organic growth Decommissioning and Built to Suit projects on track New PoPs 2016-19 Decommissioning 2016-19 Target: 2,000 sites Built to Suit 2016-21 (1) Target: 2,200 sites +3%/+4% annual 25% 73% 2016 2019 2021 Progress (2) Overlapping sites (3) Dismantling One tower with multiple tenants A B B A (1) Including recent agreement with Bouygues Telecom announced in February 2017 (2) Contracted (3) Overlapping sites are defined as sites whose coverage overlaps with at least one other telecom tower Photos taken in the North Italy 14
Results January December 2016. 3 rd February 2017 15 Financial Outlook 2017 RLFCF To grow >10% EBITDA 330 Mn 340 Mn Dividend 10% growth Strategic outlook Focus on European opportunities Potential expansion and consolidation projects Selective approach through strict M&A criteria Available funding alternatives for growth Cash from operations Project financing (optimized amount and cost) Equity partners at OpCo / regional level Securitization and other instruments
Additional information available on Press as well as Investor Relations rooms @ cellnextelecom.com FY 2016 Results FY 2016 Consolidated Annual Financial Statements Backup Excel File Cellnex Telecom is part of the ESG índices: Cover photo by Roberto Taddeo (creative commons) 16
17 Disclaimer The information and forward-looking statements contained in this presentation have not been verified by an independent entity and the accuracy, completeness or correctness thereof should not be relied upon. In this regard, the persons to whom this presentation is delivered are invited to refer to the documentation published or registered by Cellnex with the National Stock Market Commission in Spain (Comision Nacional del Mercado de Valores). All forecasts and other statements included in this presentation that are not statements of historical fact, including, without limitation, those regarding the financial position, business strategy, management plans and objectives for future operations of Cellnex (which term includes its subsidiaries and investees), are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of Cellnex, or industry results, to be materially different from those expressed or implied by these forwardlooking statements. These forward-looking statements are based on numerous assumptions regarding Cellnex s present and future business strategies and the environment in which Cellnex expects to operate in the future which may not be fulfilled. All forward-looking statements and other statements herein are only as of the date of this presentation. None of Cellnex nor any of its affiliates, advisors or representatives, nor any of their respective directors, officers, employees or agents, shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents, or otherwise in connection herewith. This presentation is addressed to analysts, media and to institutional or specialized investors and should be read together with the supporting excel document published on the Cellnex website. The distribution of this presentation in certain jurisdictions may be restricted by law. Consequently, persons to which this presentation is distributed must inform themselves about and observe such restrictions. By receiving this presentation the recipient agrees to observe any such restrictions. Nothing herein constitutes an offer to purchase and nothing herein may be used as the basis to enter into any contract or agreement.